Asset Protection & Minimizing Taxes

5 Replies

For those that want to scale, what are you doing to protect their real estate assets AND minimize taxes. I'm looking into a series LLC and a land trust. I would like a company that specialize in this with a real estate lawyer and a real estate CPA under 1 roof. So, what are people doing to protect assets and minimize taxes / what companies do you recommend?
@Scott Smith Hi Scott, I have a question for you: I own rental properties which are divided in a few LLCs. I am the only member of each LLC. Each LLC owns 3 or 4 properties. The issue I am dealing with right now is that I am mixing all the rents and expenses. So I am on the process to separate all the bills and rents and start to collects rents in the correct bank account and pay bills from the bank account owns by each LLC. At the end What I am trying to avoid is commingling. The accountant told me that my taxes needs to be done in the same way as I am doing right now, it means all the properties will be put on the schedule E and the LLCs will be ignore for tax purposes. My questions are: 1. Is this not commingling then? Even that I am separate all my rents and expenses per property per LLC, but then I am mixing them on my taxes. Is this the correct way to do my taxes on the assest protection point of view? Shall I do separate taxes per LLC even that I am the only member so I can avoid commingling? 2. I have a home office and use my car also for real estate. My CPA told me at the moment I deduce miles and put expenses of my home office on the taxes, then I am doing commingling. If that is true? Then how shall I treat the miles and home Office expenses having multiple LLCs ? Thank you!
Originally posted by @Jose Salazar :
@Scott Smith

Hi Scott, I have a question for you:

I own rental properties which are divided in a few LLCs. I am the only member of each LLC. Each LLC owns 3 or 4 properties. The issue I am dealing with right now is that I am mixing all the rents and expenses. So I am on the process to separate all the bills and rents and start to collects rents in the correct bank account and pay bills from the bank account owns by each LLC. At the end What I am trying to avoid is commingling.

The accountant told me that my taxes needs to be done in the same way as I am doing right now, it means all the properties will be put on the schedule E and the LLCs will be ignore for tax purposes. My questions are: 1. Is this not commingling then? Even that I am separate all my rents and expenses per property per LLC, but then I am mixing them on my taxes. Is this the correct way to do my taxes on the assest protection point of view? Shall I do separate taxes per LLC even that I am the only member so I can avoid commingling?

2. I have a home office and use my car also for real estate. My CPA told me at the moment I deduce miles and put expenses of my home office on the taxes, then I am doing commingling. If that is true? Then how shall I treat the miles and home Office expenses having multiple LLCs ?

Thank you!

 Jose, the best thing to do in your case would be to setup a management company. The management company gives a place to cover costs/deductions and pay for some advanced tax strategies.

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